"We have worked with the management of The Basement for more than six months to ensure an appropriate transition could take place and have amicably agreed to end the lease," a spokesperson for AMP said.

Shutting down reports the underground venue will be turned into office space, the spokesperson said: "It's too soon to say whether another music operator, bar or restaurant will move in."

The underground music spot is known for its prime Circular Quay location. It managed to survive former premier Mike Baird's lock-out laws at a time when many other live music venues closed.

The Macquarie Place venue has hosted the likes of Dizzy Gillespie and Herbie Hancock, and had scheduled gigs for Dami Im and Diesel in the next few months.

Big names played at venue

Daniel Goodacre, AKA Daniel G Felix, is the founder of The Monday Jam at The Basement.

"I am angry and very sad that The Basement is closing. It really is the place to go for live music in Sydney and it has always been such a great platform for new and emerging artists," he said.

When Prince toured Australia in 2012, he dropped in for a surprise gig, and he was not the only musician worth name dropping who has played at The Basement.

"So many big names have played a gig and then ended up at The Basement for drink and an impromptu performance — James Morrison, New York saxophone player David Murray, Cuban piano player Omar Sosa, to name a few," Goodacre said.

"It's amazing that a venue with such a name is closing down, especially when it's still busy all the time … we don't want to have a reputation where Sydney is boring, there's nothing to do, there's no nightlife."

News broken on Facebook

Musician Danny G Felix broke the news on Facebook, saying tonight would be the final Monday jam at The Basement.